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Author: Sharene Lee

Did you know your used iPhone 6 can feed 100 refugees? This Earth Day, reduce your e-waste and save lives in the process. Dubai-based startup Melltoo, no-melltoo classifieds, has partnered with local startups Fetchr, Washmen and The Box to collect your used electronics for free. The devices will be reset, data wiped and sold for charity. Funds will go to Salma Aid, a Sheikh Mohammed bin Rashid initiative that provides food relief for victims of humanitarian crises.

Earth Day is an annual event, celebrated on April 22, on which day events worldwide are held to demonstrate support for environmental protection. It was first celebrated in 1970, and is now coordinated globally by the Earth Day Network and celebrated in more than 193 countries each year.

According to Morrad Irsane, cofounder of Melltoo: “Most of us in the UAE have mobile phones, laptops and TVs that we no longer use. They collect dust in a drawer or closet somewhere. Eventually, we throw them away. When we do this, not only do we contribute to the growing e-waste problem, we’re throwing away money that can be used to help people. We at Melltoo collect these electronics, we clean and reset them, then sell them to support refugees. We reduce the clutter in your lives and reduce the amount of e-waste produced, while helping people.”

As consumer electronics become indispensable tools in everyday lives, e-waste is a rapidly escalating problem. More than 45 million tons of e-waste are produced globally every year, the equivalent of 100 Burj Khalifa towers. The global average is 6.1 kg per person of e-waste a year. Compare that to the UAE average of 13.6kg of e-waste per resident in the Emirates.

UAE has “one of the world’s lowest life expectancy of electronics and high amounts of consumption, making the country produce substantial amounts of electronic waste annually”, according to an e-waste report by the United Nations University, UN information and communication technology agency, The International Telecommunication Union and the non-profit International Solid Waste Association,

While there are several initiatives to recycle e-waste in the UAE, Melltoo takes it one step further. The startup first attempts to sell devices that are in reasonable condition then recycles what cannot be sold through their partners. Sale proceeds go to support Salma Aid, a Sheikh Mohammed bin Rashid initiative that provides food relief for victims of humanitarian crises.

On the occasion of Earth Day, the startup has partnered with Washmen, Fetchr and The Box to collect used electronics from UAE residents. For the week of Earth Day, from 22 – 28 April, they will collect consumer electronics like mobile phones and devices, laptops and computers, accessories, TVs, game consoles and the like. Customers of Washmen, an on-demand laundry service, can add a box of unwanted electronics along with their laundry pickup. Washmen collects everything and delivers them to The Box, a self-storage facility in Al Quoz that has donated storage space to store the electronics while they are being prepped for sale. In addition, Fetchr, a last-mile logistics company, will also do home pickups of used electronics for free. Melltoo, along with a team of student volunteers will clean and reset all devices and list them for sale.

“We are grateful to our partners, The Box, Washmen, Fetchr and our student volunteers for their generosity in supporting this Earth Day #Declutter4aCause initiative, in line with the Year of Zayed. The problems of e-waste and the refugee crisis are not problems that one entity or person can solve alone. It is through working together and getting everyone involved that we can really make a difference.” said Morrad Irsane of Melltoo.

The introduction of VAT in the UAE has people worried. It increases the cost of living for everyone in already tough economic times. Fortunately, buying and selling second hand items on Melltoo is still generally a VAT free activity. Since Melltoo doesn’t own the inventory being sold in the marketplace, Melltoo is only responsible for VAT on our selling fees and courier charges. However, for the time being, we have decided to absorb the additional costs in an effort to support our community of buyers and sellers. We’re in this together.

As a seller on Melltoo, you are responsible for VAT on the products you are selling. So do you have to charge VAT on your items? If you are an individual selling a used iPhone or second hand sofa, there is no VAT applicable as long as it’s a one-time activity. However, if you are a business or shop in the business of selling second hand items, then you must charge VAT on the profit you made if you sell more than 375,000 AED a year. Here are other scenarios to consider.

Scenario 1: Individual selling new or used personal belongings on Melltoo

If you sell more than 375,000 AED per year: VAT is charged at 5% on the profit you make.

For example, you purchase a used LV bag from someone at 1000 AED and you want to sell it for 1250 AED. Your profit is 1,250 – 1,000 AED = 250 AED. You are liable to collect 5% VAT on your profit (250 AED x 5% = 12.50 AED). In other words, your item should be priced at 1,262.50 AED (1,250 + 12.50 AED) and you will have to pay 12.50 AED in taxes at the end of the year.

What do you do with the smartphones, laptops and electronics that you stop using? Where can you donate, recycle, or dispose of unwanted electronics in the UAE?

As our lives become more and more dependent on electronics, consumer upgrade cycles are shortening. In 2013-2014, the typical consumer upgraded and replaced his smartphone every 24 to 26 months. In 2017, the global average was every 21 months. In the GCC, UAE and Saudi Arabia, consumers upgraded their devices every 19 months.

So what happens to the devices that get replaced? Most of us stick them in a drawer somewhere, forget about them and they eventually end up as ewaste. Electronic waste is a big problem. 2017 produced an estimated 48.2 million metric tons of ewaste, that’s about 100 times the weight of Burj Khalifa.

Ewaste is particularly bad for the environment. Not only is ewaste often hazardous, leaking harmful chemicals (such as lead) into the environment, it is also largely composed of irreplacable metals and nonbiodegradable glass and plastics.

So what can you do with your used and unwanted electronics in the UAE? Here are several options to properly deal with ewaste in the UAE.

Option 1: Sell

Selling your used electronics is typically a great way to recycle a product by giving it a second. Even broken electronics can be sold for parts.

Melltoo is a great place to sell used electronics. List your items online in complete privacy, buyers contact you via in-app chat and comments. Once the buyer is ready, he/she pays in-app and a courier collects the item from you to be delivered to the buyer. There are NO meetups with strangers and payment is transferred to your bank account or in cash via cardless ATM. Download the app here.

If you really want to make a positive impact, you can also #Resell4aCause through the Melltoo app, donating all sale proceeds to a charitable cause. Supported causes including food relief for refugees (Salma Aid) and sponsoring orphans (Emirates Red Crescent). In exchange, you will receive “impacter credit” which can be exchanged for vouchers and credit at other retailers. The process is basically the same as a normal sale, more info can be found here.

Second hand mobile shops

These can be found in many neighborhoods around Dubai and all over the UAE. They are usually located in the souqs or neighborhood strip malls. Typically, you bring in your device and the shop purchases it from you in cash. However, since the shops need to make a sizable margin off your device, you won’t get a very good price for it.

Trade-in

There are many retail outlets that let you trade in your used devices for store credit to purchase a new one. Axiom and eMax both do this. You bring your device into the store and they will give you a quote on how much your device is worth. The amount is then given to you as store credit to purchase a new item. Of course, the issue with this is that you will have to purchase a new device from the same store.

Option 2: Donate

Your used electronics can improve the lives of people in need.

Give to those around you

The UAE is a diverse community with people from all walks of life and economic situations. If you know people who would benefit from your used device, the ideal situation is to give your device to them. In some cases, they will use it; in other cases, they will sell it and pocket the cash. However, you should only give people functional devices.

As an added service, Melltoo will also collect your used electronics and sell them on your behalf. Sale proceeds will go to the charitable cause that you wish to support. Melltoo will also erase all data and reset devices to factory settings prior to the sale. Instead of handling the sale on your own, Melltoo will do it for you. The only caveat is that you will not receive the “impacter credit” that you would normally receive if you handled the sale personally (see above).

Give to charitable organizations

Unfortunately, there are very few charitable organizations that accept electronics as donations. This is not surprising since handling and processing electronics is expensive and difficult. Charity programs need cash to operate. In-kind donations such as clothing and shoes are typically sold by the kilogram to resellers in order to obtain the cash required to purchase new items for those in need. Electronics are even more difficult to collect and process and charities simply don’t have the manpower and resources to do this.

If you want to donate electronics to charities, call the organization ahead of time to ensure that they are willing to accept them. Then ask them for the precise drop off location where you can bring your electronics.

Option 3: Recycle or dispose

There are several options to recycle or dispose of your used electronics with reduced harm to the environment. Some are free public services and others are paid services. Here are some companies to try.

When we first started Melltoo, we started with scratching an itch, solving a pain point that we personally had, the terrible user experience of classifieds. Deep down, classifieds appealed to us on an emotional level because it encompasses several of our personal convictions.

We, as the human race, should not waste the precious resources we have been given by our creator. Classifieds is the key to resale and reuse.

We believe in community and the need to strengthen its bonds across social, economic, and cultural divides. Classifieds allows participation by all segments of the community.

Along the startup journey, as we busily grew the company from 2 to 25, we lost sight of some of the ideals that guided us in the first place. So over the last several weeks, we did some soul-searching in an effort to define our “raison d’etre” as a company. This is our we’ve come up with.

Our Vision

To change the way we consume things to enable society to strike a balance between consumerism and sustainability. To advocate for responsible consumerism through resale and reuse and to fight the disease of inaction. Great leaps forward begin with small steps.

Our Mission

The preservation of our only planet is the business of all and not the few.The only way to achieve this mission is to get the masses involved and the only way to get the masses involved is to make it easy for them to get involved. Hence, our mission is to make buying and selling preowned goods so easy it becomes an enjoyable and rewarding part of everyday life, enabling everyone to do their part in building a more sustainable society.

Our Values

Individual responsibility = everyone is responsible for their own actions, be it our staff or consumers in general

Social responsibility = It is our responsibility, as part of society, to give back to society

People before technology = As technology becomes a mediator between people, we must not regard technological advancement as superior to human advancement. Technology exists to serve people.

Customers are people just like us, they deserve to be treated the way we would want to be treated

Always ask why = question the status quo, if there isn’t a good reason for something, then change something

Our Product Pillars

Peer2peer = a marketplace for mass participation where buyers are sellers and sellers are buyers.

Trust = the marketplace actively works to establish and protect trust within the community

Innovation = innovate or die

Service = beyond technology, our product is also about service and our responsibilities to our customers

As we look ahead in building the region’s foremost peer2peer marketplace, we will take our vision, mission, and values as guideposts along the way.

Eligibility and Account Registration

To be eligible to use Melltoo Pay services, you must be at least 18 years old and a resident of the United Arab Emirates. You can only use Melltoo Pay services inside the United Arab Emirates and you must register with a phone number that you own.

As a service of Melltoo Marketplace, all account users of Melltoo Pay are subject to the legal and privacy policies of Melltoo Marketplace.

All verified users of Melltoo Marketplace automatically have an account on MelltooPay. You may also create a new account by connecting and verifying your mobile number. However, we reserve the right to require additional information for verification purposes in order to complete the account creation process.This information includes, but is not limited to, your name, email address, text-enabled cellular/wireless telephone number, postal address, date of birth and UAE or International ID identification. During the registration process, you agree that the personal information you provide to Melltoo Pay upon registration and at all other times will be true, accurate, current and complete, and you agree to maintain and update this personal information with us as necessary.

Identity Authentication

You hereby authorize MelltooPay, directly or through third parties, to make any inquiries we consider necessary to validate your identity and/or authenticate your identity and account information. This may include asking you for further information and/or documentation about your account usage or identity, or requiring you to take steps to confirm ownership of your email address, wireless/cellular telephone number or financial instruments (e.g. credit card), and verifying your information against third party databases or through other sources. This process is for internal verification purposes.

Non-accurate information or lack thereof during a verification process may lead to permanent account suspension. Melltoo Pay will report fraud cases (as detailed) below and identity misrepresentation to authorities in charge.

Adding Money

As a service of Melltoo Marketplace, your balance on Melltoo Pay will be your exact Cash Balance on Melltoo Marketplace. You may add an amount of 2000AED every month via other funding sources such as cash, bank transfer or credit card payment. The transfer is capped at 2000AED per month.

Sending Money

As a user of MelltooPay, you will be allowed to send money from your account to another Melltoo Pay account. All users already registered on Melltoo Marketplace have an existing account on MelltooPay.

Default Funding Sources

Your Melltoo Pay balance consists of the funds you have in your Melltoo Marketplace Cash Balance account as well as new additions from your external credit card account.

Funding Source Limitations

In order to manage risk, Melltoo Pay may limit the funding sources available for your use to fund any particular transaction. For example, we may limit your funding sources for a particular transaction to only Melltoo Marketplace Cash Balance.

Sending Limits

All transfers made via external third-party affiliated credit card accounts through Melltoo Pay services are currently limited to 500AED per transfer.

Additionally, while Melltoo Pay account holders can send unlimited amounts of money via their accounts to other accounts, Melltoo Pay may, at discretion, impose limits on the amount of money you can send or receive through the Melltoo Pay services. If we have authenticated your identity, we may increase your sending and/or receiving limits. These limits may change from time to time at MelltooPay’s sole discretion. You may not send money between two accounts you own.

Refused, Failed Transactions & Amounts sent to the wrong user

When you send money via MelltooPay, the amount will be transferred to the recipient’s account instantly. The amount is then available for withdrawal by the recipient instantly.

You agree not to hold Melltoo Pay or its employees liable for any damages resulting from a recipient’s decision not to accept a payment made through the Melltoo Pay Services.

You agree not to hold Melltoo Pay or its employees liable for any damages resulting from sending money to the wrong recipient whose information is provided by you.

Melltoo Pay and Melltoo Marketplace cannot force an account holder to “refund” or “return” money sent through Melltoo Pay services. The transfer is made at the sender’s authorization and cannot be reversed.

A transaction may be refused or fail if the sender does not have sufficient funds to finish the transfer process.

Receiving money

The recipient of the funds may be able to either refuse or accept a money transfer through Melltoo Pay services. All transfers, when initiated by the sender, are final and cannot be reversed.

Fees

The transfer of Cash Balances between one Melltoo Pay account and another Melltoo Pay account is free.

Adding funds to your Melltoo Pay eWallet using a credit card will incur a 4.5% fee charged directly to your credit card at the time of the operation. The fee is to cover the costs of the credit card transaction.

Investigation and Fraud

To protect users from fraud, all Melltoo Pay users are subject to routine investigations into user profiles and account activities. If policy violations or other fraudulent activities are found, investigations may result in account suspension or removal of already attributed Cash Balance amounts.

Account suspension

A decision to suspend an account on Melltoo Marketplace temporarily or permanently will incur the same result on Melltoo Pay and vice versa. The banned user will not be able to use Melltoo Pay nor Melltoo Marketplace services.

Withdrawals

Regular withdrawal requests are processed within 7 business days, not including weekends (Fridays and Saturdays). Withdrawals where further information is required or incorrect information is supplied by the user may take up to 14 business days.

Please note the following policies regarding withdrawals:

One payment per beneficiary (not account) per week.

Western Union transfers under 1000 AED incur a transfer 20 AED fee

Western Union transfers over 1000 AED are free of charges

Bank transfer withdrawals are always free in the UAE

Withdrawal to Mashreq Bank ATM’s are free and disbursed in multiples of 100AED

Withdrawal to free credit are worth 125% of Cash Balance and are not reversible

There are many ways to earn free credit, through our referral program, through flash sales, and even by exchanging your cash balance for +125% free credit. Now that you have free credit in your account, how can you spend it?

You may spend it to purchase any item in-app

Free credit has an expiration date (April 10, 2017) after which you may no longer use it again.

Up to 50% of the purchase price can be paid using free credit

Up to a maximum of 300 AED per purchase can be paid for using free credit

Your free credit balance will automatically be applied first in all purchases

We guarantee that a buyer will receive the item he purchased or his payment will be refunded.

We guarantee that a seller will get payment for the item he sold or he will get his item back in the same condition it was shipped.

Valid reasons for returns include:

Item received is not the item that was purchased

Item is not as described in the listed ad

Item has significant flaws that greatly affect usability and that were NOT mentioned in the ad

Invalid reasons for returns include:

Buyer changed his mind

Buyer doesn’t “like” the “color” or some other subjective characteristic of the item that doesn’t impact usability and function

Item doesn’t fit even though the size indicated is accurate

In the event that the reason for return is invalid, a buyer may still return the item WITH SELLER’S APPROVAL. The buyer will be responsible for the shipping costs (2-ways) of the original transaction and the return transaction. In most cases, the shipping cost in 40 AED, but in cases where the item is large, shipping costs will vary.

In the event of a dispute between buyer and seller, Melltoo will arbitrate between the two parties based on the posted ad, in-app communications (chats and comments) and photographic evidence provided by users.

Sellers can dispute the return of their items from buyers. The steps are as follow:

seller requests to dispute return

customer care team will contact buyer via email asking for reason for dispute

buyer has 3 days to reply after email is received

customer care team will contact seller via email to verify claims, seller has 3 days to reply

if necessary, more info will be requested

a decision will be made and funds released within 3 days after all information is collected from both parties

NOTE: If either buyer or seller fails to respect the deadlines, the dispute case will be closed in favor of the other party.

All return claims have to be made within three days or order delivery and BEFORE buyer formally “accepts” the item on the application.

For more information on policies, please read the extended version on Melltoo’s terms and conditions page.

You cannot return an item because you no longer want it without the approval of the seller.

Please note that more than 3 returns or cancellations within a month will result in the user account being flagged and potentially blocked

Return fees

In many cases, we may levy return fees for either the seller or the buyer. The fees usually cover the shipping and return shipping fees from the seller’s address to the buyer’s and back. This means that return fees is always twofold of original shipping fee on the listing e.g. (40AED, 80AED, etc.).